Category: Energy

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Hybrid sales rise while battery electric sales remain lower after tax credit expiration

Source: US Energy Information Administration

In-brief analysis

July 27, 2026

Data source: Omdia
Note: 1Q16=first quarter 2016; 2Q26=second quarter 2026

In the second quarter of 2026 (2Q26), 24% of new light-duty vehicles sold in the United States were hybrid electric, battery electric, or plug-in hybrid electric vehicles, up from 22% in 2Q25. Between 2Q25 and 2Q26, hybrid electric vehicles continued to gain market share, reaching a record 16% of light-duty vehicle sales. The market shares of battery electric and plug-in hybrid electric vehicles decreased, according to estimates from Omdia. In 2Q26, battery electric vehicle sales were 6% of new light-duty vehicles sold, down from 7% in 2Q25; plug-in hybrid electric vehicle sales fell from 1.9% to 1.4% over the same period.

These different vehicle types affect the broader energy sector in different ways. Battery electric and plug-in hybrid electric vehicles can consume electricity from the grid, which affects electricity demand. By comparison, hybrid electric vehicles consume liquid fuels and do not connect to the grid. Hybrid vehicles were not eligible for any of the federal tax credits that expired in September 2025.

Data source: U.S. Energy Information Administration

Two tax credits for purchasing or leasing new electric vehicles both expired on September 30, 2025: the New Clean Vehicle Credit and the Qualified Commercial Clean Vehicle Credit. Battery electric vehicles made up a record 12% of light-duty vehicle sales in September 2025, immediately before the credits expired. However, 2025 marked the first year where annual sales and market share of battery electric vehicles declined, a trend that has continued in 2026. Battery electric vehicle sales fell to 6% of new vehicle sales in the first six months of 2026, down from 7% over the same period last year.

Battery electric vehicles have historically been more popular in the U.S. luxury vehicle market, which accounted for 12% of the total U.S. light-duty vehicle sales in 2Q26. However, battery electric vehicle sales are also decreasing in this market segment. In 2Q26, battery electric vehicles accounted for 14% of luxury light-duty vehicle sales, down from 22% in 2Q25.

Data source: Omdia

Because sales figures in any year are relatively small compared with the total number of vehicles on the road, electric vehicles’ share of the light-duty vehicle fleet is much less than the recent total 7% sales share in 2Q26. In 2024, the most recent year for which we have fleet-wide data available in our Monthly Energy Review, electric vehicles accounted for 2% of all registered light-duty vehicles in the United States.

Principal contributors: Matthew Skelton, Michael Dwyer

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Energy Secretary Secures Grid Across 17 States Amid Period of Hot Weather

Source: US Department of Energy

WASHINGTON—The U.S. Department of Energy (DOE) issued an emergency order to keep Americans across 17 states powered during the region’s energy emergency brought on by hot weather conditions. The order directs the Southwest Power Pool, Inc. (SPP) to dispatch specified generation units and to order their operation as needed to maintain reliability. The order also authorizes SPP to direct backup generation resources to operate as a last resort before declaring an Energy Emergency Alert (EEA) 3 or during an EEA 3. The order was issued pursuant to a request from SPP.

“The Trump Administration is tapping into an abundant supply of unused backup generation to maintain affordable, reliable, and secure power for hardworking American families and businesses,” said U.S. Secretary of Energy Chris Wright. “The previous administration’s energy subtraction policies weakened the grid, leaving Americans more vulnerable during emergency events. Thanks to President Trump’s leadership, we are reversing those failures and using every available tool to ensure Americans have continued access to affordable, reliable, and secure energy to power and cool their homes.”

DOE estimates more than 35 gigawatts (GW) of unused backup generation remain available nationwide.

On day one of his second term, President Trump declared a national energy emergency after the Biden administration’s energy subtraction agenda left behind a grid increasingly vulnerable to blackouts.

Power outages cost the American people $44 billion per year, according to data from DOE’s National Laboratories. This order mitigates the possibility of power outages in the region and highlights the commonsense policies of the Trump Administration to ensure Americans have access to affordable, reliable, and secure electricity.

The order is effective on July 26, 2026, and shall expire at 11:59 PM CDT on August 3, 2026. 

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Energia Costa Azul, Mexico’s second LNG terminal, shipped first cargo

Source: US Energy Information Administration

In-brief analysis

July 24, 2026

North America liquefied natural gas export facilities (2016–2031)

Data source: U.S. Energy Information Administration, Liquefaction Capacity File, and trade press
Note: Bcf/d=billion cubic feet per day; LNG=liquefied natural gas; FLNG=floating liquefied natural gas. Sites that are listed as commissioning have introduced feedgas, system testing, and first LNG production and exports but have not started meeting long-term shipping obligations.

Energia Costa Azul, the second liquefied natural gas (LNG) export facility in Mexico, shipped its initial cargo from Phase 1 of the terminal on July 8, according to the project developer. The completion of the project adds 0.4 billion cubic feet per day (Bcf/d) of nominal export capacity from a single train, tripling Mexico’s LNG export capacity. The facility is the first terminal in Mexico and the second in North America, following LNG Canada, to be located on the Pacific Coast, boosting North American export capacity there to 2.2 Bcf/d. The Pacific Coast location allows for shorter shipping routes to importers in Asia.

LNG exports from this project are subject to regulatory approvals by the U.S. Department of Energy (DOE) because the facility is supplied with natural gas sourced from the United States. DOE has authorized 0.50 Bcf/d of LNG exports from Energia Costa Azul Phase 1 to countries that have a Free Trade Agreement (FTA) with the United States and 0.44 Bcf/d of LNG exports to non-FTA countries.

Sempra has proposed a second phase of the project, which if constructed would add 1.6 Bcf/d of nominal export capacity from two large-scale trains.

Principal contributor: Jordan Young

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Energy Department Announces Up to $65.5 Million to Advance Domestic Oil and Natural Gas Production and Delivery

Source: US Department of Energy

WASHINGTON—The U.S. Department of Energy (DOE) today announced up to $65.5 million in federal funding for cost-shared research, development, and deployment projects to strengthen domestic oil and natural gas production, improve the efficiency and reliability of critical energy infrastructure, and convert underutilized resources into valuable products. The funding opportunity supports technologies that maximize the productivity of existing infrastructure, expand the capacity and performance of energy delivery systems, and strengthen the resilience of America’s oil and natural gas supply chain. 

The funding opportunity supports President Trump’s Executive Order, “Unleashing American Energy,” and advances the Trump Administration’s commitment to ensuring Americans have access to affordable, reliable, and secure energy through the responsible development of our nation’s abundant oil and natural gas supplies.

“Thanks to President Trump’s leadership, the Energy Department is making strategic investments to strengthen America’s oil and natural gas industry and reinforce the critical infrastructure that powers our economy,” said DOE Under Secretary of Energy Kyle Haustveit. “This funding opportunity will help American producers eliminate waste, improve efficiency, and deliver the affordable, reliable, and secure energy that powers our economy and strengthens our national security.”

America’s extensive oil and natural gas production and delivery system supplies energy for manufacturing, chemical production, electric power generation, residential consumers, and a growing energy export sector. DOE has released a Notice of Funding Opportunity (NOFO) seeking innovative proposals that address the following areas:

  • Maximize the Value of Stranded and Underutilized Resources: Develop and validate technologies to transform oil, natural gas, and associated product streams—including those that would otherwise be stranded, flared, or limited by contaminants—into high-value, readily transportable products. Funded projects will progress from laboratory-scale validation of new catalysts, reactor systems, and separation processes to field-testing modular, decentralized gas conversion systems and sour gas processing facilities in active production basins.
  • Enhance Supply Chain Durability and Infrastructure Reliability: Develop, validate, and field-test advanced materials, innovative equipment, and novel infrastructure components to prevent product losses and bolster domestic chemical supply chains. This includes improving facility-level equipment and transport infrastructure—such as compressors, valves, piping, storage tanks, coatings, and alloys—to maximize safe and efficient energy delivery.
  • Optimize Operations Through Digitalization and Smart Test Sites: Accelerate the adoption of digital technologies, smart facility concepts, and advanced analytics to improve operational efficiency, safety, and reliability within the upstream and midstream oil and natural gas sector. Projects will utilize full-scale, field-based validation platforms and test sites to deploy continuous monitoring systems, artificial intelligence-supported digital twins, and infrastructure optimization systems that increase saleable hydrocarbons, reduce operating costs, and track the technical maturity of emerging technologies.

Today’s announcement builds on DOE’s recent $150 million funding opportunity, which focuses on enhancing recovery efficiency from unconventional oil and gas reservoirs, advancing hydraulic fracture characterization technologies, and developing innovative approaches for produced water management.

Read more details about this notice of funding opportunity here. The application deadline is September 22, 2026, at 5:00 p.m. ET.

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United States and Saudi Arabia Reach Historic Nuclear Cooperation Agreement

Source: US Department of Energy

WASHINGTON—U.S. Secretary of Energy Chris Wright and Saudi Minister of Energy His Royal Highness (HRH) Prince Abdulaziz bin Salman signed a peaceful nuclear cooperation agreement, commonly known as a 123 agreement, alongside an accompanying bilateral safeguards agreement. Together, these two agreements lay the legal foundation for a decades-long, multi-billion-dollar partnership that advances several priority economic and strategic objectives, including nuclear nonproliferation.

The 123 agreement provides great access for American companies in the Saudi nuclear energy program, benefiting American industry, workers, and supply chains while helping to meet Saudi energy needs.

The two agreements also advance U.S. and regional security by upholding high standards of nuclear safety, security, and nonproliferation and strengthening the United States’ competitive edge in civil nuclear technology.

“These agreements reflect our two nations’ shared commitment to strengthening U.S.-Saudi commercial relations, delivering prosperity at home and security to our allies abroad,” said Secretary Wright. “Rest assured, these agreements uphold the highest standards of nuclear safety and nonproliferation, while relying on the world’s best nuclear technology and scientists, designed right here in the United States. Thanks to President Trump, the American nuclear renaissance is underway and will deliver long-term benefits to the American and Saudi people.”

Under President Trump’s leadership, America is restoring its competitive edge in the global civil nuclear marketplace. This agreement builds on President Trump’s Executive Order, Deploying Advanced Nuclear Reactor Technologies for National Security, and specifically Section 8 on Promoting American Nuclear Exports, which supports an expansion of international partners for U.S. civil nuclear cooperation under Section 123 of the Atomic Energy Act of 1954, as amended.

This partnership will:

  • Expand American nuclear technology exports
  • Create high-paying U.S. jobs and long-term economic growth
  • Strengthen America’s energy and national security posture
  • Reinforce global nonproliferation standards
  • Deepen the strategic partnership between the United States and the Kingdom of Saudi Arabia

The agreement will now be transmitted to Congress for review.

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Commercial crude oil inventories increased by 2.0 million barrels

Source: US Energy Information Administration

In-brief analysis

July 22, 2026

Data source: U.S. Energy Information Administration, Weekly Petroleum Status Report
Note: Commercial crude oil inventories do not include crude oil in the Strategic Petroleum Reserve (SPR).

For the week ending July 17, 2026, commercial crude oil inventories (excluding the Strategic Petroleum Reserve) increased 2.0 million barrels to 411.7 million barrels, 6% below the previous five-year (2021–2025) average. Gasoline inventories increased 0.8 million barrels, 7% below the five-year average. Distillate inventories increased 1.4 million barrels, 10% below the five-year average. Propane/propylene inventories increased 6.3 million barrels, 34% above the five-year average. Total commercial petroleum inventories increased by 11.6 million barrels for the week.

Data source: U.S. Energy Information Administration, Weekly Petroleum Status Report
Note: Commercial crude oil inventories do not include crude oil in the Strategic Petroleum Reserve (SPR).

U.S. refineries operated at 96.1% capacity utilization, processing 17.1 million barrels per day (b/d), down 58,000 b/d from the previous week. Gasoline output averaged 9.7 million b/d, and distillate production increased to 5.3 million b/d.

Crude oil imports increased 117,000 b/d to 5.8 million b/d, although the four-week average of 5.6 million b/d is 11% less than a year ago. Gasoline imports averaged 494,000 b/d; distillate imports averaged 173,000 b/d.

Over the past four weeks, total product demand averaged 20.4 million b/d, down 1% year over year. Gasoline demand increased 1% to 8.9 million b/d, while distillate demand increased 2% to 3.7 million b/d. Jet fuel demand increased 9% year over year. The increase demand for transportation fuels was offset by decreasing demand in residual fuel oil, propane, and other oils.

Principal contributors: EIA Staff

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Secretary of Energy Chris Wright Announces First Genesis Mission Projects Selected to Accelerate AI-Driven Scientific Discovery

Source: US Department of Energy

WASHINGTON—The U.S. Department of Energy (DOE) today announced the first projects selected under the Genesis Mission Request for Applications (RFA) as part of President Trump’s historic Genesis Mission. The national portfolio of research teams will help develop and demonstrate AI-enabled scientific workflows designed to accelerate breakthroughs in energy, discovery science, and national security.

Designed to double America’s scientific productivity, the Genesis Mission brings together DOE’s world-class scientific capabilities, advanced AI, high-performance computing, and the nation’s leading researchers to transform how scientific discovery is conducted and strengthen American leadership in science and technology.

“America has no shortage of bold ideas or talented scientists, and the response to the Genesis Mission proves that,” said U.S. Secretary of Energy Chris Wright. “The 278 projects selected today represent the very best of our nation’s scientific enterprise. The remarkable number of high-quality proposals we received demonstrates that America’s innovation pipeline is strong, and it points to even greater opportunities for future investment and continued expansion of the Genesis Mission portfolio.”

The Genesis Mission RFA generated the largest response to a funding opportunity in DOE history. Following a rigorous merit review process, the selected projects represent:

  • 278 awards: 87 led by DOE and National Nuclear Security Administration (NNSA) National Laboratories, 168 led by universities, 19 led by companies, and 4 led by nonprofit organizations.
  • 342 participating institutions: 16 DOE and NNSA National Laboratories, 142 universities, 157 companies, 13 nonprofit organizations, and 14 other institutions.

These projects will address some of the nation’s most pressing energy, scientific, and engineering challenges, including in nuclear energy, critical mineral extraction, intelligent chip design, and commercial fusion energy. 

Among the selected projects, the largest is a three-year, $60 million investment in nuclear energy that will harness AI to help deliver nuclear facilities faster and safer while cutting operating costs to provide Americans with affordable, reliable, and secure energy.

“The extraordinary response to this Genesis Mission application process demonstrates that America’s scientific community is ready to reimagine how discovery happens,” said Under Secretary for Science Dr. Darío Gil. “Through the Genesis Mission, we are bringing together the nation’s leading researchers, institutions, and technology partners to build the next generation of scientific capability. We look forward to seeing these teams demonstrate new research workflows that accelerate discovery and reveal what is possible when AI and science advance together.”

With today’s selections, research teams will begin developing and demonstrating AI-enabled scientific workflows designed to accelerate scientific discovery across DOE’s mission areas. Awardees will gain access to the Genesis Mission Platform, including AI agent frameworks, advanced AI models and software made available through industry partners, and high-performance computing resources across DOE’s National Laboratories and partner facilities. Together, these capabilities will enable researchers to rapidly design, test, and refine new approaches to accelerate scientific discovery.

Read additional information about today’s announcement.  Learn more about the Genesis Mission.

Selection for award negotiations is not a commitment by DOE to issue an award or provide funding. Before funding is issued, DOE and applicants will undergo a negotiation process, and DOE may cancel negotiations and rescind the selection for any reason during that process

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Energy Secretary Secures Grid Amid Period of Hot Weather

Source: US Department of Energy

WASHINGTON—The U.S. Department of Energy (DOE) issued an emergency order to mitigate blackout risks and keep Americans powered during the region’s energy emergency brought on by hot weather conditions. The order directs the Southwest Power Pool, Inc. (SPP) to dispatch specified units and to order their operation as needed to maintain reliability. The order also authorizes SPP to direct backup generation resources to operate as a last resort before declaring an Energy Emergency Alert (EEA) 3 or during an EEA 3. The order was issued pursuant to a request from SPP.

“The Trump Administration is tapping into an abundant supply of unused backup generation to maintain affordable, reliable, and secure power for hardworking American families and businesses,” said U.S. Secretary of Energy Chris Wright. “The previous administration’s energy subtraction policies weakened the grid, leaving Americans more vulnerable during emergency events. Thanks to President Trump’s leadership, we are reversing those failures and using every available tool to ensure Americans have continued access to affordable, reliable, and secure energy to power and cool their homes.” 

DOE estimates more than 35 gigawatts (GW) of unused backup generation remains available nationwide.  

On day one of his second term, President Trump declared a national energy emergency after the Biden administration’s energy subtraction agenda left behind a grid increasingly vulnerable to blackouts.  

Power outages cost the American people $44 billion per year, according to data from DOE’s National Laboratories. This order mitigates the possibility of power outages in the region and highlights the common sense policies of the Trump Administration to ensure Americans have access to affordable, reliable, and secure power.

The order was effective upon issuance on July 20, 2026, and shall expire at 11:59 PM ET on July 21, 2026. 

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DOE and DOL Partner to Advance Mining Innovation and Safety

Source: US Department of Energy

WASHINGTON—The U.S. Department of Energy (DOE) and the U.S. Department of Labor (DOL) today signed a Memorandum of Understanding (MOU) establishing a framework to accelerate the deployment of artificial intelligence (AI), automation, advanced sensors, and other emerging technologies across the nation’s mining sector.

The five-year agreement strengthens federal coordination to advance mining innovation while improving worker safety, increasing productivity, and supporting the secure domestic production of critical minerals. By combining DOE’s expertise in energy technologies and resource recovery with DOL’s longstanding leadership in mine safety, the partnership advances the Trump Administration’s commitment to strengthen critical mineral supply chains, support high-paying American jobs, and unleash American energy dominance

“America’s security and economic future depend on developing a strong domestic mining sector,” said U.S. Secretary of Energy Chris Wright. “By pairing the Energy Department’s technical expertise with the Labor Department’s leadership on mine safety, we can support American miners, secure domestic supply chains, and put cutting-edge technology to work for the people who power our nation.”

“Today’s agreement ensures that the Department of Labor and the Department of Energy will work side by side to prepare the mining workforce, advance mining technology, and support the safe production of the coal that powers America’s future,” said Acting Secretary of Labor Keith Sonderling. “It is our commitment to you that this MOU will further President Trump’s promise to restore coal as a key driver of America’s energy supply chain and American coal will again be the envy of the world for generations to come.”

Under the agreement, DOE’s Hydrocarbons and Geothermal Energy Office (HGEO) and Office of Critical Minerals and Energy Innovation (CMEI) will collaborate closely with DOL’s Mine Safety and Health Administration (MSHA) to share non-proprietary data, research, and technical expertise that supports the deployment of next-generation mining technologies.

The partnership will focus on:

  • Fostering Collaborative Research and Development: Conducting joint research, testing, and demonstration projects involving AI, automation, advanced sensors, and other technologies that improve mining operations. 
  • Leveraging Federal Expertise: Working with multidisciplinary teams at DOE’s National Energy Technology Laboratory Coal Center of Excellence to accelerate technology development and deployment. 
  • Improving Mine Safety: Applying advanced technologies to strengthen hazard detection, reduce mining accidents, and enhance emergency preparedness and response. 
  • Facilitating Workforce Development: Identifying future workforce needs and supporting education and training opportunities that equip miners with the skills needed for increasingly technology-driven operations. 
  • Enhancing Data Access and Digitization: Working with stakeholders to digitize legacy mining data and improve public datasets that support characterization of domestic mineral resources, including on federally managed lands. 

Read the full Memorandum of Understanding here.

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U.S. Energy-Related Carbon Dioxide Emissions, 2025

Source: US Energy Information Administration

This report highlights notable trends in energy-related carbon dioxide (CO2) emissions in the United States in 2025, based on preliminary data. The U.S. Energy Information Administration (EIA) has published this report on an annual basis since 2010, and has published monthly historical data and forecasts on energy-related CO2 emissions since August 2009.

U.S. energy-related CO2 emissions increased by 2%, or about 115 million metric tons (MMmt), in 2025. Emissions increased across all economic sectors, with the largest increase (in tonnage) in the electric power sector as a result of both higher electricity demand and a larger share of electricity generated from coal, relative to 2024 (Table 1). Colder winter weather relative to 2024 also led to an increase in emissions from the residential and commercial sectors for space heating.

Emissions increases in the industrial and transportation sectors were small, with energy efficiency gains and switches to less carbon-intensive fuels curbing growth. The following sections of the report provide more detail and insights into emissions changes for each sector.

Table 1. Total U.S. energy-related carbon dioxide emissions by sector, 2021–2025
million metric tons of carbon dioxide
Sector 2021 2022 2023 2024 2025
Residential 325 340 313 304 331
Commercial 245 260 245 239 256
Industrial 977 964 964 955 960
Transportation 1,807 1,842 1,855 1,863 1,871
Electric power 1,553 1,539 1,422 1,427 1,485
Total 4,906 4,945 4,799 4,789 4,904
Data source: U.S. Energy Information Administration, Monthly Energy Review, May 2026, Tables 11.1–11.6
Note: Totals may not equal sum of components due to independent rounding.

Figure 1. U.S. energy-related CO2 emissions by sector, 1990–2025

Figure data

Growth in electricity demand and coal’s share of electricity generation were the largest contributors to increases in CO2 emissions

CO2 emissions from the electric power sector rose by 4%, or 58 MMmt, in 2025, partly because of growth in overall electricity generation. Net generation in the electric power sector increased by 3%, or 12 terawatthours (TWh), in 2025, surpassing 2024’s record annual generation. Hot summer weather, which led to increased demand for space cooling and record summer peak electricity demand, and growth in electricity demand from data centers and manufacturing facilities both contributed to increased generation.

Changes in the electricity generation mix also influenced sectoral CO2 emissions, with both net growth in fossil fuel-fired generation and relative growth in coal-fired generation, which emits more CO2 per kilowatthour than natural gas when combusted. Specifically:

  • Coal-fired electricity generation increased by 13% (85 TWh), raising coal-related CO2 emissions by 78 MMmt
  • Natural gas-fired electricity generation decreased by 4% (64 TWh), lowering natural gas-related CO2 emissions by 23 MMmt
  • Wind generation increased by 3% (12 TWh) and solar generation rose by 34% (75 TWh), curbing increased emissions from electricity generation

Electricity generation from other sources was essentially flat compared with 2024.

Figure 2. Share of U.S. electric power sector generation by fuel source, 1990–2025

Figure data

Colder winter weather led to higher residential and commercial natural gas use and CO2 emissions

CO2 emissions increased in 2025 from rising consumption of natural gas, propane, and distillate fuel oil—key fuels used in space heating–in both the residential and commercial sectors. Increases in CO2 were primarily a result of colder winter weather relative to 2024. U.S. population-weighted heating degree days (HDDs), increased by 9% relative to last year, with a peak winter HDD reaching 12% higher than the 2024 winter season.

Figure 3. U.S. monthly average heating degree days, 2020–2025

Figure data

Direct energy use CO2 emissions in the residential and commercial sectors increased by 9% (27 MMmt) and 7% (17 MMmt) relative to 2024, respectively.

Figure 4. U.S. residential sector direct carbon dioxide emissions by fuel source, 1990–2025

Figure data

Figure 5. U.S. commercial sector direct carbon dioxide emissions by fuel source, 1990–2025

Figure data

Total industrial CO2 emissions remained mostly unchanged as decreases in coal-related emissions balanced increases from natural gas

CO2 emissions from the U.S. industrial sector increased by less than 1% (5 MMmt) in 2025. Despite an increase in industrial output in 2025, emissions from the sector remained relatively unchanged because of changes in fuels used. Specifically, coal use in the industrial sector, for both power and manufacturing, continued to decrease through 2025. However, as coal use in industry has decreased, natural gas use has continued to increase and is expected to reach records in 2026 and 2027. As a result of these fuel changes, industrial coal-related emissions fell by 4% (3 MMmt) in 2025 while natural gas-related emissions rose by 1% (6 MMmt). The residual increase in total emissions was a result of modest increases in consumption of various petroleum products.

Figure 6. U.S. industrial sector direct carbon dioxide emissions by fuel source, 1990–2025

Figure data

Transportation sector CO2 emissions remained flat as decreases from motor gasoline emissions offset increases from distillate fuel oil

U.S. transportation sector emissions remained effectively unchanged in 2025 as emissions changes in the two most-used fuels, motor gasoline and distillate fuel oil, offset each other. CO2 emissions from motor gasoline fell by 1% (12 MMmt), but CO2 emissions from distillate fuel oil increased by 3% (12 MMmt). Smaller emissions increases from other fuels, such as jet fuel as use has gradually returned to near pre-pandemic levels, did not meaningfully affect overall sectoral emissions changes. Total transportation sector emissions rose by less than 1% relative to 2024.

Decreases in motor gasoline CO2 emissions were most closely associated with improvements in vehicle fuel economy, some of which can be attributed to changing trends in vehicle powertrains. Most of these fuel economy improvements can be attributed to continued efficiency improvements in conventional light-duty vehicles. To a lesser extent, increases in electric vehicles and hybrid electric vehicles in the U.S. light-duty fleet also contribute to fuel economy improvements. Emissions reductions from improvements in light-duty vehicle fuel economy outpaced emissions growth from steadily rising on-road vehicle travel, resulting in an overall reduction in motor gasoline emissions.

Increases in CO2 emissions from distillate fuel oil, mostly from increased vehicle travel and on-road diesel consumption, offset emissions decreases from motor gasoline. Diesel is a more common fuel in larger heavy-freight vehicles, for which there are fewer electric and hybrid options. As a result, demand for freight movement grows faster than fuel economy improvements, leading to a net increase in distillate emissions.

Figure 7. U.S. transportation sector carbon dioxide emissions by fuel source, 1990–2025

Figure data

We based our analysis of U.S. energy-related CO2 emissions in this report on data published in our Monthly Energy Review (MER). This initial analysis is based on preliminary 2025 data published in the May 2026 edition of the MER. These values are subject to change as final data are published from underlying sources, according to source data revision policies and publication schedules. Although these results are still preliminary, we expect only minor revisions to these estimates. If major revisions to 2025 CO2 emissions estimates do occur, then this report will be revised accordingly. Supplemental analysis, figures from past reports, and a discussion of the methodology and terminology used in this report are available in the Appendix.

Emissions values and analysis presented in this report pertain only to U.S. CO2 emissions associated with fossil-fuel combustion and non-combustion applications of energy products (for example, as industrial feedstocks). We do not include estimates of CO2 emissions outside this scope or other greenhouse gas emissions burned or released in production, extraction, or distribution of energy products. Our approach may result in discrepancies between our emissions estimates and those of other organizations, including other U.S. government agencies.

In addition to historical estimates, we also offer short-term forecasts and long-term projections of U.S. energy-related CO2 emissions in several other data products. You can find a short-term forecast of U.S. energy-related CO2 emissions and key drivers in our monthly Short-Term Energy Outlook (STEO), which includes monthly forecasts by fuel source currently through the end of 2027 and the latest estimates of the effects of recent events on energy markets and energy-related CO2 emissions. We publish long-term U.S. emissions projections in our Annual Energy Outlook, which provides annual projections of energy-related CO2 emissions by fuel source, sector, and end use through 2050.

EIA has published this report on an annual basis since 2010. The STEO has included a forecast for energy-related CO2 emissions since August 2009. The MER has also included historical data for energy-related CO2 emissions on a monthly basis since August 2009.